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Prelude LNG Development to Deploy Shell’s FLNG Technology

Shell plans to develop its Prelude and Concerto gas discoveries, located in the Browse Basin off the northwest coast of Western Australia, using its innovative Floating Liquefied Natural Gas (FLNG) technology. Shell’s FLNG solution is an important development for the LNG industry, with its ability to process gas ‘in situ’ over an offshore gas field, reducing both project costs and the environmental footprint of an LNG development. Shell is the Operator and 100% equity holder of the WA-371-P permit, containing the Prelude and Concerto fields, which would be developed sequentially. While pending a Final Investment Decision, the Prelude FLNG Project is now in the Front End Engineering and Design (FEED) phase of development. FEED for Prelude is being undertaken as part of Shell’s contract with the Technip-Samsung Heavy Industries consortium for the design, construction and installation of multiple FLNG facilities.

Malcolm Brinded, Shell’s Executive Director, Upstream International, said: “Shell is excited to be progressing with FLNG technology, which has the potential to unlock some of Australia’s ‘stranded’ gas reserves that have previously been considered uneconomic to develop because of their small size or distance from shore. FLNG technology adds to Shell’s LNG leadership – we are already the largest LNG marketer amongst the international oil companies, and are technical advisor to many of the world’s LNG facilities.” Jon Chadwick, Shell’s Executive Vice President – Australia, Upstream International, said: “I am delighted that we are planning for the first application of Shell’s FLNG technology to be in Australia. This Project will produce LNG, Condensate and Liquefied Petroleum Gas during its 20-plus years of operation and it will contribute to Australia’s economy through employment, tax revenue and business opportunities for Australians. This project is fast moving, with Prelude discovered in January 2007 and Concerto in late March 2009.”

Shell is currently working on the environmental and production approvals for the Prelude FLNG Project, with the Environmental Impact Statement soon to be released for public comment. This follows a successful drilling campaign in WA-371-P, in which all twelve commitment wells were drilled, with discoveries of the Prelude and Concerto fields.